Advantages of Capitalism

One of the benefits of capitalism is that

• It eliminates social hierarchies

• When producers compete it results in innovations that benefit all of society

• The government would play a large role in helping poor people escape poverty

• The result would be state controlled monopolies on resources and factories

an economic system in which a country’s industry and trade are controlled by private owners, not the government

• capitalism

• laissez-faire

• regulate

• entrepreneur

One of the benefits of capitalism is that

• It eliminates social hierarchies

• When producers compete it results in innovations that benefit all of society

• The government would play a large role in helping poor people escape poverty

• The result would be state controlled monopolies on resources and factories

An economic system in which a country’s industry and trade are controlled by private owners, not the government

• capitalism

• laissez-faire

• regulate

• entrepreneur

Which of the following is a characteristic of capitalism?

• Centralized economic planning

• Private property rights

• Government ownership of resources

• Fixed pricing by the state

In a capitalist economy, who primarily determines the prices of goods and services?

• The government

• Consumers and producers

• International organizations

• Local councils

What is one advantage of capitalism in terms of consumer choice?

• Limited product availability

• Wide variety of goods and services

• Standardized products

• Government-selected options

How does capitalism encourage innovation?

• Through government mandates

• By rewarding successful entrepreneurs with profits

• By limiting competition

• By providing state-funded research

Which of the following best describes the role of competition in a capitalist economy?

• It reduces efficiency

• It leads to monopolies

• It drives innovation and efficiency

• It is discouraged by the government

What is a potential benefit of capitalism regarding economic growth?

• Slower growth due to regulation

• Rapid growth through market-driven forces

• Growth controlled by government policies

• Growth limited to certain sectors